The central bank of Nigeria in one of it's researches, published a report titled "SME: Issues, Challenges and Prospects" written by Prof. Banji Oyelaran-Oyeyinka Director

Monitoring & Research Division (UN-HABITAT). The presentation highlights the plights experienced by the common Nigerian, if such a term called "common Nigerian" do exist. A caption of that report states "In countries at same levels of development with Nigeria, SMEs contribute a much higher proportion to GDP than currently observed in Nigeria." Compared to other emerging markets, Nigeria has historically shown lack of commitment to building a strong SME sector; These economies have shown consistent commitment to the development of SMEs by implementing: access to finance and financial incentives, basic and technological infrastructure, adequate legal and regulatory framework, and a commitment to building domestic expertise and knowledge. In light of recent events in the Nigerian macroeconomic environment, SMEs have compelling growth potential and like other emerging economies are likely to constitute a significant portion of GDP in the near future.

The economist recently published a report titled "Enabling a more productive Nigeria: Powering SMEs". Adam Green of the Economist Intelligence Units took to Financial Times to write on Nigerian's SMEs: feeling every bump. Adam Green wrote this on June 2015. While there was nothing spectacular about Adam Green's writeup because the Nigerian SME problem is a well known problem to the common but Mahesh Sachdev a former Indian High Commissioner to Nigeria goes ahead to make interesting comment which am merely republishing it verbatim here:

As former Indian High Commissioner to Nigeria and author of a recently published book titled 'Nigeria: A Business Manual', I found this curtain raiser on the forthcoming EIU (Economist Intelligence Unit) Report on Nigerian SMEs to be very interesting on an important and often ignored aspect of the Nigerian economy. I wish to add a few points:

1. Nigerians, in general, and Igbo community, in particular, have great propensity for entrepreneurship which propels the growth of the country’s SMEs. They are mostly engaged in trading, retail and services (such as consumer delivery logistics and IT-enabled Services). Manufacturing is a small, but fast growing, component of Nigerian SMEs, even as it is often confined to assembling imported components and packaging them. If Nigeria is to address its formidable youth unemployment, SMEs and agriculture are likely to be the two main domains.

2. Despite grand and frequent announcements, the Nigerian official agencies such as Bank of Industry and SMEDAN have done little to render practical assistance to country’s SMEs. The funds earmarked for financing and training etc do not trickle down in large enough manner to make an impact. The incubation and facilitation activities are feeble at best.

3. Apart from well known strong headwinds faced by SMEs from rampant corruption, regulators, financers, poor logistics and infrastructure – some of them listed in the article – the SMEs face other difficulties too. These range from unreliable supply chains, dearth of trained manpower (which is also hard working, disciplined and honest) should be counted at the top. Further, fierce competition from low cost imports (mostly from China) has killed more Nigerian SMEs (esp. in textile-garments, food-processing and leather sectors) in last few decades than any other factor.

4. Surprisingly enough, recent expansion in large size enterprises in Nigeria in such sectors as cement, telecom, ICT, retailing, etc has not resulted in commensurate growth in ancillary activities - which would have boosted SME activity. In fact, most of the time, the big companies and the government fixation with top down growth have competed with SMEs to latter’s detriment.

5. Although SMEs face formidable odds in Nigerian eco-space, it would be wrong to profile them all as heroes waging a herculean struggle for survival and growth. Many of the ills that bedevil Nigerian economy today, from counterfeit medicines to sub-standard auto parts, illegal refineries, poor safety standards (which cause horrific accidents), frauds that sully Nigeria’s image, drug cartels, etc can be pinned to the widely prevalent tendency in some SMEs to make money at all costs and in shortest possible time. Nigerian authorities need to help the country's SMEs to help themselves rid of these tendencies.

Like they say every problem has a solution. My next article will try to look at how these problems can be solved.

When considering the might of countries, most of us initially gauge their military strength before even thinking of their economic might. The moment economic strength is

considered, the picture changes dramatically; for it is true that the richest countries are not necessarily the strongest countries.

Africa is a bit peculiar in this regard. Africa’s super powers are generally the African countries with the largest standing armies, but not necessarily the richest countries. Which begets the question, how are they able to amass their weapons and sustain their military. That is a different topic for another day.

The countries in Africa that are considered the wealthiest have the highest GDP (Gross Domestic Product) or PPP (Purchasing Power Parity) – all jargons to me because people can’t eat GDP.

Of all these countries, which of them actively support Entrepreneurship or small businesses? I have highlighted Kenya above because their major income comes from Agriculture, and they are one of the largest Tea and Coffee exporter, this inadvertently makes them a nation of small businesses. But apart from Kenya, most of the listed African nations depend heavily on Oil, Tourism, natural resources and minerals like Diamond and Mercury.

Majority of these countries will chase every avenue, milk every resource to get on that list, but they forget the most important natural resource – People, human beings like you and I with intellect, instinct, creativity and businesses that if supported will replace any natural resource.

Africa’s blessing is truly its Achilles heel. Because it is blessed with crude oil, diamonds and some unbelievable minerals ensures that all of their governments pile all their efforts in mining these resources at the detriment of others. Some people will say rightly so; perhaps, but these resources can be chased in addition to others. For example, Nigeria is known globally for its oil….. that’s about it! But there are some stunning locations in the country begging for the tourism industry to be developed in line with (or in addition to) Oil. The country is also rich with other natural deposits like tin, iron ore, coal and limestone

The same can be said of Gabon, who is now experiencing declining oil production as a result of it’s over- reliance on the product at the expense of other resources.

Small businesses in majority of African countries play no role in the countries’ economy and are not in the plans of African governments. The irony is that the continent is full of thriving small businesses. Because education is for one reason or the other not within reach of many, therefore in order to survive most start a small business.

When you think of it, the amount of small businesses PLUS innovations that emerge from Africa is just enough to launch most African countries on the global stage. The potential is huge! Why then is Entrepreneurial spirit not encouraged?

Some of the richest individuals today are African, they are all entrepreneurs with thriving businesses, most of these businesses started as a small business – isn’t it ironic then that support for small businesses is virtually non-existent? I must say however, some great Africans have created Foundations to assist entrepreneurs – like Tony Elumelu of Tony Elumelu Foundation and Asante Africa Foundation. But these are just a tiny drop in the ocean.

Innovation in Africa is another matter. There are some truly inventive Africans with some really cool innovations. These innovations are mostly celebrated in Africa however, with little or no support from the government. I must single out Kenya and South Africa and give them credit; they are countries that have really been innovative with their inventions serving their people on a daily basis. Alarm fitted Television, traffic robot etc.

Limitations have a way of making people creative – some of the inventions coming out of Africa these days are nothing short of magical. Urine Powered Generators by 14 year olds in Nigeria is an example. Charging shoes is another.

I propose a Ministry of Small Businesses in all countries in Africa; with a department of Innovation and Creativity heavily funded by monies generated from the oil and minerals these countries chase like crazy.These Ministries’ only concern should be for economic growth and the promotion of skills and education to promote trade and entrepreneurship by helping people to start and successfully grow a business.

Without that, I suspect that this issue will continue at a detriment to Africa.

Departments for Entrepreneurship and Small Business is as important as those of Health, Education and the Military. Since education will not be available to most people, why not empower them to start a business and contribute significantly to the economic growth and positive social movement of the country?

The Niger Delta region, a zone of six states is rich in hydrocarbons and water resources. It is home to the Ijaws which are the majority, and other groups like

the Bini, Urhobo, Itsekiri, Isoko, Anioma, Ikwerre, Annang, Ibibio, Efik, etcDespite it's resources, the region is plagued with poverty and environmental degradation as a result of oil spillage and gas flaring which has destroyed their natural habitat.To re-engineer the economy of the Niger Delta area, urgent steps should be taken by the leaders which include

1. Investment In Education:The leaders of the Niger Delta should build state of the art primary, secondary and tertiary institutions which will be well equipped and offer STEM education as a foundation for technological excellence amongst it's youths to solve the problems of the region.

2. Investment in Research and Technology Parks:The Niger Delta should establish Research and Technology Parks which will focus on future solutions for energy, water, fisheries, agriculture, building, manufacturing taking their aquatic environment into context in line with modern technologies of today like nanotechnology, artificial intelligence, robotics, etc. These parks should be established in Benin, Port Harcourt, Warri, Asaba/Ogwashiukwu, Ugep, Wilberforce Island(Bayelsa) and the Ibom Science and Technology Park at Uyo which will create a knowledge economy should be established.The Knowledge Park at Tinapa should be given more priority by the present administration of Senator Ben Ayade to create technology entrepreneurs of the Silicon Calabar corridor.

3. Investment in Infrastructure:Infrastructural investments which will boost the regional economy like Roads, Rail, River and Deep Seaports, airports and Special Economic Zones should be established. The governments of Bayelsa, Rivers and Delta states can understudy the infrastructural developments of Florida, Venice, Rotterdam, Singapore and other city states which are aquatic in nature to build sustainable infrastructure which will contribute to the development of their region.

4.Establishment of Industrial Parks:Industrial Parks should be established in all the senatorial districts in the Niger Delta which will focus on AgroAllied Industries, Boat and Shipbuilding, Oil and Gas Pipeline Manufacturing, Rig Construction and other allied products which support the hydrocarbon dominant economy of the region

5. Establishment of Venture Capital Funds:Venture Capital Funds should be established to support young entrepreneurs of the region in order to stem the tide of militancy due to poverty

6. Investment in Seafaring:The youths of the Niger Delta who are unemployed can be trained to become seafarers as their region is an aquatic region where their civilization revolves within the sea. Seafaring contributes about $6billion to the Phillipino economy and the Niger Delta can equally rake in billions of dollars from seafaring if the youths are empowered to partake in the maritime economy.

They are people bound by a common history originating from Ile-Ife and hospitable playing host to different tribes in their localities. The South-West economy of the past was based on agriculture. Produce such as Cocoa was the mainstay of their economy with a Marketing Board which ensured it's competitiveness in the market. The development of Lagos Da Kuramo started with the Portuguese explorers who named the lagoon (Lagos). The British took over the control of the affairs in 1861 and transformed the fortunes of the territory. With the amalgamation of the former Northern and Southern Protectorates in 1914, Lagos became the new capital and economic nerve centre of Nigeria.

Lagos controls about 40 percent of Nigeria's GDP and is positioning itself to become Africa's Financial Centre.To tap into the opportunities the future will present the following should be done.

1. Create Technology Parks: Technology Parks should be created at Ota, Ogbomoso, Remo, Ijebu, Ibadan, Akure, Ado-Ekiti, Ile-Ife where research from the tertiary institutions located in these cities will be commercialized.

2. Establish Industrial Parks: Industrial Parks should be established in communities where agricultural and solid mineral resources abound. They will engage in processing the resources

3. Build Technology Incubation Centres:Technology Incubation Centres should be established where youths with specific skills will mentored on how to build a business around it in line with modern technologies.

4. Ease the Cost of Doing Business:The Cost of Doing Business should be eased. Startups should be granted tax holidays for the first few years until they start earning profit. Businesses should be set up within 24 hours and multiple taxes should be abolished.

5. Infrastructural Development: Renewable energy technologies and ecofriendly innovative building and maintenance strategies should be implemented.

The Igbos have been trading for over 500 years ago and this has been sustained by an Apprentice Scheme where a master trains his apprentice for

a while in his trade and settles him later. This built the Igbo fortunes of the past, but the wealth of tomorrow must come from Innovative Ideas. Technology has disrupted virtually all spheres of human endeavor including trading. The revenues of Alibaba and Amazon have made brick and mortar traders look like child's play.

We live in an age where competition is stronger than before. From the MS DOS and BASIC which laid the foundation for the Personal Computing Revolution, trends have come and gone. The technologies of today(Cloud Computing which Social Media Companies embrace to process data), Data Analytics, Software As A Service, Internet of Things which has given birth to connected cars, homes, clothes, health tracking technologies and Artificial Intelligence which has seen drones competing with Humans in Logistics, Security, Health and other sectors. Those who play big in these areas will control wealth more than an Oil Sheikh can comprehend.

In the south-east of today there is growing restlessness among the youths for entrepreneurial empowerment but sadly enough no Business Schools like Lagos Business School which is a world class training institute, Technology Incubators and Accelerators where Startups can receive funding and mentorship to create the solutions of tomorrow.

YCombinator, the world's biggest Technology Accelerator has created companies with not less than $50billion in value. Zhongchiang District in Beijing has created companies with value of over a $100billion. The TelAviv tech corridor in Israel has created tech companies worth billions of dollars creating solutions that have made them the darling of Silicon Valley.

The Solution to this is;1. Build Research Technology Parks:All the Universities and Polytechnics in the south-east should have Research and Technology Parks where innovations will be commercialized. They will be seedfunded with grants from the university and private sector to kickstart their projects.

2. Establish Technology Accelerators and Incubation Centres:These should be set up to train youths with Innovations on how to build a viable business model around it.

3. Establishment of Venture Capital Funds:The Private Sector in the south-east should create Venture Capital Funds which will discover Innovative Startups and invest in them to create the solutions of tomorrow.

4. Establishment of Business Schools:Business Schools should be established in key cities in the south-east to train the Igbo traders on modern dynamics of business for their competitive advantage.

5. Establishment of High Tech Industrial Parks and Special Economic Zones:Hightech Industrial Parks which will concentrate on the manufacturing of automobile/automotive, consumer electronics, medical equipments, fashion, semi conductors, power generation equipments and other products which will boost and improve the fortunes of the south-east. They should be built in Special Economic Zones spread across all the south eastern States.

The Northern Nigeria region which is the largest in the country by landmass is home to the Hausa, Fulani, Kanuri and other groups like the

Gbagyi, Nupe, Igala, Idoma, Tiv, Jukun, Berom, Angas, Kataf, Kuteb, Jarawa, Tangale, etc.It is a region which has agriculture as the mainstay of it's economy as it feeds the rest of the federation with it's produce and also rich in solid minerals.

Due to large demographic of it's population not literate, poverty, diseases and insecurity have destroyed the Northern economy. The collapse of the United Nigeria Textile Mill in Kaduna, Ajaokuta Steel Plant in Kogi, etc have led to the importation of foreign textile and steel.

To get the Northern Nigeria Economy on track the following should be done:

1. Education: The Northern State Governments should invest in providing quality education for it's citizens. The Almajiri should be educated in both the Islamic and Western educational models to make them prepared for tomorrow's challenges. Primary, Secondary and Tertiary Institutions should be provided with modern infrastructure in order to make them competitive.

2. Build Technology Parks: Technology Parks should be established in Kano, Zaria, Yola, Minna, Ilorin with the required world class infrastructure to support them to engage in Research, Development and Commercialization of findings to solve local problems.

3. Use Modern Agricultural Technologies:Modern Agricultural Technologies should be embraced by the Northern State Governments to boost agriculture in their domains.

4. Establish Technical Vocational Institutes:Vocational Institutes of learning should be established to train youths in skills which will make them self reliant rather than redundant.

5. Promote Solid Mineral Development: The North has solid minerals worth billions of dollars in value which if developed will boost the fortunes of the region. Mining Development Agencies should be established in the mineral rich states to promote their development.

6. Establish Industrial Parks: Industrial Parks should be established which will engage in the processing of agroproduce and solid minerals

7. Engage In Tree Planting To Combat Desertification:Desertification is a serious threat to the economy of the North and must be tackled with a sustainable solution. Tree Planting can help to checkmate the effect of desertification and boost their economic fortunes.

Entrepreneurs are vital to the progress of any country’s economy. These small business owners and their activities are instrumental to

improvement of the nation. Especially in times of recession, like we are currently experiencing in Nigeria, their business activities help spur economic activity and encourage exchange. Entrepreneurs, therefore, serve an important purpose in the Nigerian society by contributing to the improvement of the economy in numerous numbers of ways.

1. Entrepreneurs create businesses that hire people.This is the topmost reasons why entrepreneurs improve the economy. Their businesses require a number of employees to help them run the business; from accountants to computer programmers to human resource staffs all businesses have them. Entrepreneurs provide their employees a steady job and income. The workers’ income puts food on the table and feed their family members. The same income will be needed to be able to buy necessities such as food, clothing and shelter. This in turn will help spur the economy and provide necessary jobs and businesses for people that meet these basic needs. For those who earn a lot more, they can now afford to spend on luxuries such as vacation, jewelries and concerts. This will benefit the people working or providing these kind of businesses.

2. Entrepreneurs pay taxes.The small businesses that the entrepreneurs established are required to pay necessary local, state, and/or the federal government taxes. The tax revenue from the businesses will be used by the government to provide people with basic services such as health care, transportation, education, construction and so many others.

3. Entrepreneurs create demand for products which in turn create jobs and other businesses.Entrepreneurs need to buy products in order to produce finished goods. They need raw materials. Sometimes these raw materials are finished goods themselves, for instance gold. Buying raw materials for their businesses will create other businesses which in turn create more jobs. For example, it is necessary for fashion designers to buy silk fabrics, so they go to silk fabric suppliers. These suppliers may require workers to keep track of their inventories and orders. And the cycle goes on and on, further stimulating the economy.

4. Entrepreneurs introduce new technologies to the market.This is a history-making practice of entrepreneurs. They come up with new technologies, create new products and provide new services. Steve Jobs, the founder of Apple Computers, introduce us to Mac and iPod. Bill Gates founded Microsoft. The works of these two individuals led to the creation of millions of other software programs that we see today.

5. Entrepreneurs stimulate the economy by instilling confidence in people.The economic health of a nation generally depends on its GDP (Gross Domestic Product) performance. Entrepreneurs, through the jobs and businesses they create, are vital to the GDP equation. Having a healthy economy makes people confident to invest, live and work even in times of recession.

A feasibility study helps to analyse the viability of a business idea. The feasibility study goes beyond the initial can we to answer the crucial question of

“should i proceed my the proposed business idea? The intricacies of the study are as follows;

1. Economic AnalysisI believe this is where your feasibility study should start from. What is the essence of carrying out market research or even going ahead to build a business when the economy does not favor entrepreneurship or private ventures? Analyzing the economy will help you align your planned business with the economic situation on ground. Economic feasibility should include analysis on government’s fiscal and monetary policies, import and export rate, inflation rate, and currency exchange rate and so on.

2. Market AnalysisThe next thing you should be analyzing is the market for your proposed business idea. Carrying out a feasibility study on the market will enable you know if there is actually a need or market for your business idea. Market analysis will also help you to determine the size of the market, demographics and psychographics of the market, level of competition and the size of the market you can compete for.

3. Technical AnalysisThis part of a feasibility study deals with the technological requirements of the business. Technical analysis will enable you determine the method of production to be employed, equipments, spare parts and tools, site development, supporting facilities, the nature of the factory building, fencing and so on.

4. Location AnalysisThis is carried out with a view to determine the best location for the business in terms of nearness to high traffic roads, nearness to infrastructure, ease of transportation of raw materials and finished products, cost of land acquisition and so on.

5. Manpower AnalysisThis part of a feasibility study deals with the process of estimating the level of skill, professionalism and number of employees to be hired by the business. The salary scale, incentives and pay package are also estimated at this point.

6. Financial AnalysisFinancial analysis will be dealing with the estimation of the total capital involved, capital expenditures, working capital; profit and loss analysis, pricing of products, cash flow projections, projected sales revenue and the entire project viability. Everything concerning finance should be dealt with at this juncture. If you are trying to raise venture capital for your small business startup, then you have to do a clean job on the financial section of the feasibility report because this is where investors focus on. All they are interested in knowing is how much is the percentage return on investment and the payback period.

7. Sensitivity and Risk AnalysisThis is the last part of a feasibility study and probably the most important. After all other factors have been analyzed and proven viable, sensitivity and risk analysis can come in. Building a business without properly conducting a risk analysis is like flying a plane without regards to weather condition.

Before any business idea is taken to the marketplace, its risk to reward ratio should be analyzed, the sensitivity to competition should be determined and the liquidation rate of companies in the industry of your proposed business venture should be calculated. With results obtained from sensitivity and risk analysis, growth and survival strategies can be developed for your proposed business.

As a final note, if conducting feasibility study is too technical for you; then consider hiring a professional to do the dirty work for you. It’s going to save you time and energy. And just before I drop my pen, always bear in mind that carrying out feasibility study on your business idea will help you forge a competitive advantage for your business and increase your chance of success.